Note 5 - Leasing Arrangements

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Lessor, Operating Leases [Text Block]

5. LEASING ARRANGEMENTS

The Company leases land primarily to agriculture operators and space in commercial buildings, primarily to restaurant and retail tenants through

2048.

In addition, the Company provides delivery services of potable and non-potable water to West and Upcountry Maui areas. These operating leases generally provide for minimum rents. Leases

may

also include licensing fees, percentage rentals based on tenant revenues, and reimbursement of common area maintenance and other expenses. Certain leases allow the lessee an option to extend or terminate the agreement. There are

no

leases allowing a lessee an option to purchase the underlying asset. The impact of COVID-

19

on tenants' sales activity resulted in lower percentage rental income. Rent abatements of

$0.4

million were also granted to tenants during

2020.

Total leasing income for the years ended

December 31, 2020

and

2019

were as follows:

	2020		2019
	(in thousands)
Minimum rentals	$	2,719	$	2,863
Percentage rentals		427		1,779
Licensing fees		456		912
Other (primarily common area recoveries)		1,236		1,353
Water system sales		1,110		1,241
	$	5,948	$	8,148

Leased property, net of accumulated depreciation, was

$12.7

million and

$14.1

million at

December 31, 2020

and

2019,

respectively.

Future minimum rental income during the next

five

years and thereafter is as follows:

	(in thousands)
2021	$	2,849
2022	$	2,215
2023	$	1,334
2024	$	788
2025	$	769
Thereafter	$	8,847